(via Thenewswire.ca)
VANCOUVER, CANADA / TheNewswire / January 7, 2015 - Network Media Group Inc. ("Network" or the "Company") (TSX: NTE.V) is pleased to announce it anticipates a record revenue increase of more than 400% for fiscal 2016 (ended November 30) as a result of the current and forecasted production and distribution activities of its subsidiary, Network Entertainment Inc. This news release contains forward-looking information regarding the Company's anticipated revenue for fiscal 2015 and 2016 and its fiscal 2016 production budget. Readers are cautioned that actual results may vary. Refer to the risks and assumptions contained in the Cautionary Statement on Forward-Looking Information at the end of this news release.
In large part due to the success of recently completed projects, namely I Am Chris Farley and I Am Johnny Cash, as well as the recognition of revenue from past projects, Network forecasts revenue of approximately $1,600,000 for fiscal 2015, as compared with $1,442,418 for 2014.
Network's production activities in 2016 include ongoing development of the docu-series announced on November 26 and anticipated completion of the I Am JFK Jr. and The Cowboy documentaries. The anticipated cumulative budget for Network's slate of productions in fiscal 2016 amounts to approximately $9.5 million. These activities combined with continued recognition of revenues from distribution of past projects, allow the Company to forecast revenues of approximately $6,400,000 for fiscal 2016, which would mark a 400% increase over 2015.
The forecast for revenues in fiscal 2016 is based on agreements Network has secured with buyers to purchase films or episodes in development, the Company completing its productions in development and meeting all conditions of these agreements so that revenue is recognized in fiscal 2016, distributions from past projects based on current sales reports and past experience on sales of our iconic documentaries, receipt of expected tax credits from Canadian Federal and Provincial governments, and a foreign exchange rate of 1:1.3 USD to CDN.
Network's actual audited financial results for the year ended November 30, 2015 will be made publicly available before the end of first quarter 2016.
The Company is also pleased to announce internal management promotions.
Kent Wingerak has been promoted to Senior Vice-President, Business Affairs and, while continuing to helm the Business Affairs department, he will focus his industry knowledge and skills on initiating new business ventures and brokering complex distribution deals.
In addition, Alexis Stewart has been appointed General Counsel of the Company. She will maintain her role as corporate secretary and will continue to oversee all legal activities of the Company.
About Network Media Group
Network is focused on becoming one of the world's leading developers and producers of entertainment properties for the global marketplace and its worldwide audience. It is the parent company of Network Entertainment Inc., an established television and film production company with an award-winning international reputation. Its productions include the Academy Award shortlisted feature documentary Facing Ali, as well as documentaries on the lives of Bruce Lee, Steve McQueen, Evel Knievel and, most recently, Chris Farley and Johnny Cash. The I Am Chris Farley production, which was released in the summer of 2015, set all time ratings records for Spike.
Network's past projects and current productions can be viewed at www.networkentertainment.ca.
For further information concerning this press release, please email info@networkentertainment.ca.
ON BEHALF OF THE BOARD OF DIRECTORS OF
NETWORK MEDIA GROUP INC.
"Derik A. Murray"
Derik A. Murray
Chief Executive Officer and Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
This news release contains statements regarding the Company's anticipated revenue for fiscal 2015 and 2016 and its fiscal 2016 production budget, which constitute "forward-looking information under applicable Canadian securities laws and are based on expectations, estimates and projections as of the date of this news release. These statements are necessarily based upon management's perceptions, beliefs, assumptions and expectations of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by management of the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies that could result in the forward-looking information ultimately, perhaps materially, being incorrect. Those assumptions relating to revenues in fiscal 2016 include the Company completing its productions in development and meeting all conditions of existing film and episode purchase agreements so that revenue is recognized in fiscal 2016, distributions from past projects achieving current sales reports and expectations based on past experience on sales of Network's iconic documentaries, receipt of expected tax credits from Canadian Federal and Provincial governments, and a foreign exchange rate of approximately 1:1.3 USD to CDN.
All forward-looking information in this news release involve known and unknown risks, uncertainties and other factors that are beyond the control of the Company and may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such risk factors include, but are not limited to, each of the following, as well as those risk factors discussed in the Company's most recent quarterly Management's Discussion and Analysis, a copy of which is available on SEDAR at www.sedar.com.
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-The Company's revenues may fluctuate from quarter to quarter and year to year depending upon sales cycles, consumer demand and the timing of distributor and broadcaster license decisions, as well as the timing of when the proceeds of such licenses meet the Company's revenue recognition criteria;
-The Company is dependent upon and expects to continue to derive a large percentage of its revenues from key third-party domestic and international distributors and broadcasters, whose purchase/licensing patterns and own consumer markets may change, having a material impact on the Company's revenues and future business opportunities. In addition, such third parties may also offer their own products that are competitive with the Company's products;
-The contracts entered into with third party broadcasters and distributors may not be honoured by those third parties, or the payment terms not complied with;
-The Company is subject to the overall market demand for its products, namely documentary films, which may fluctuate depending on public preferences, as well as strength of the home entertainment business and overall economic and market conditions; and
-The timing for delivery of the Company's products to its broadcasters and distributors are subject to disruption for reasons including, but not limited to, production schedule changes, availability of production crew, travel disruptions, the personal schedules of key talent, all of which can prolong delivery times, delay the timing of release of the Company's products to the public and ultimately delay receipt of licensing and broadcasting fees.
These risk factors are not intended to represent a complete list of the factors that could affect the Company and the reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking information. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could vary or differ materially from those anticipated in such information. Forward-looking information is provided for the purpose of giving readers more insight into the Company's future financial and operational results, based on management's expectations. Readers are cautioned that the information may not be appropriate for other purposes. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking information, except to the extent required by applicable law.
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